Long wait on Dividends

if i own a stock in both ISA and invest would the ISA receive the divided before the invest assuming the stock in invest got lent out?

Difficult to say, but my view would be that if 212 are paying on actual rather than contractual dates, so we have these stages to wait on:

A) IB receiving the dividend.
B) 212 reconciling the dividends due to be paid.
C) 212 paying out the dividend.

My thought would be that 212 should pay on a contractual rather than actual basis, and as @RLX says, charge the other party for losses incurred for any late receipt.

@RLX BIP looks interesting, would you recommend investing - its 5 year capital return is 100% and it pays a dividend of 3.4% to boot. In fact its almost done 200% in 10 years along with its yield. Then again its total return is only a little above the FTSE All World Index.

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I got today the BIP dividend payment but as usual, T212 have some Tax and Dividend payment discrepancies.

  • Can you (@Team212; @Hris.M ; @Bogi.H ; @B.E) explain how a dividend payment of 0.51 USD is paid by T212 as 0.3235 USD + 0.1562 USD ( TOTAL = 0.4797 USD )?? Where is the rest/Difference of “Per Share (Gross)” of 0.0303 USD??

  • And as usual, the dividend payment of this stock instead of being classified as “Dividend (Ordinary)” as it should, it classified wrongly as “Dividend (Return of capital)” and as “Dividend (Bonus)”. And T212 says that doesn’t withhold taxes, but it seems that the values of “Per Share (Gross)” are in reality already “Per Share Net” of taxes. This also happened all the times with other stocks like BEP and BAM. If true, I don’t want pay double taxes due to T212 misrepresentation of withholding taxes.

→ Please clarify why I didn’t receive the full “Per Share (Gross)” of BIP stock of 0.51 USD.

→ Please clarify if the “Per Share (Gross)” isn’t in reality “Per Share Net” of taxes.

→ Please clarify why this dividend payment isn’t classified as “Dividend (Ordinary)” as it should, and was classified wrongly as “Dividend (Return of capital)” and as “Dividend (Bonus)”.

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I like BIP/BEP/BAM, all of the same “family”, but as you see in my previous posts, the dividend payments are always more late than usual, one of them took more than 1 month to be paid and only after I asked the respective payment. Also the withhold taxation representation seems incorrect, risking a double tax payment.

I don’t recommend these stocks in T212 due to the above issues.

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This is actually quite worrying, if you are not missing something.

I cannot possibly check the accuracy of each dividend payment, I “have to” trust my broker.

Dividends being late (in general) is another quite interesting point. I’m used to it on T212. I own multiple dividend paying shares both on II, HL and T212. II and HL usually pays a day after the stated “pay date” here it feels like quite random and many days later. I’m not buying the explanation that “they pay it when they receive it from IB”

This latency exists even in distributing ETFs (which should never happen) A most recent example I have is: I received VUSA dividends on 30th December in II and 3rd Jan here on T212. I know it seems “not long” but it should really never happen. (May be once or twice, because something went wrong, but should not be the norm)

edit:
From the support email you’ve attached “this process can take several weeks” is utter BS and does not happen anywhere else.

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It’s an approach, “you will get the dividends when you receive it”. Sometime in the future. It’s feel like a favor done to investors.

The Customer Support answer is a standard/“robot/bot” copy/paste answer as it’s also on the T212 Support/Help page:

(of course the answer is a non answer, as it doesn’t give an explanation why the dividends are late and when will be paid.)

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Could it be a lack of understanding of this, as the tax is complex on these instruments. US companies do not need to declare the split of revenue(I think) until the end of the year.

In this case, we have the information, but I dont know when Q1/2/3 were released.

This statement is false. There is Return of Capital, Dividend Income and Interest Income elements in play here.

Return of Capital $0.3104
Dividend Income $0.1361
Interest Income taxable $0.0635

There should be 4 separate entries(ideally). I think their net payment to you is right, possibly not broken down correctly.

EDIT: They should also ideally state what tax has been paid on the income element.

The BAM/BEP/BIP had the classifications of “Return of Capital” in all 2021 dividend payments. And the Brookfield never mention Returns of Capital but “Dividends”. “Return of Capital” isn’t the same as “Dividends”, especially for taxation matters:

And which part of dividend payment is considered as “Bonus” in your taxation/dividend classifications? :wink:

As T212 have paid one part as “Bonus” in both BIP and BEP?

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I receive only these payments and as you can see that don’t match, either in amounts or in classifications, as it also includes “Bonus”:

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Need 212 to confirm, but its probably a glitch in the matrix. Its declared as a ‘dividend’ to the market, but its much more complicated than that.

The biggest component is ‘return of capital’, so I suspect that is what 212 have done, just an odd amount. I suspect there is an income element in there that is non taxable which would explain why its greater than the capital element. That would mean 0.3235 less 0.3104 giving an income element of 0.0131 non taxable. Need to read note 1 at the bottom, I suspect that will answer it.

Then because there is more than one part to this ‘dividend’, the second part has to be applied to your account as a bonus. Again a kink in the system as probably not built to handle complex distributions.

Need 212 to confirm. I would use the official data from the company website to log your tax documents, not what’s your account statement.

I do think what they have paid is right as add 15% tax back on the the income/bonus, and you get roughly back to the aggregate 0.51 distribution. The tax may not always be 15% either on these due to dividend/interest but close.

Hey, @RLX . :wave:

Let me shed some light on the situation. We are receiving the dividend amount from our intermediary, and we are distributing them using the exact same way they were paid to us by IB.

Regarding the BIP dividend, we received the dividend in three parts: 0.323500, 0.156200 and 0.0303 USD. The first two payments, respectively for 0.323500 & 0.156200 are without taxation, and we’ve paid the gross amount, whereas the third payment for 0.0303 USD Gross was taxed thus, you received 0.022725. As always, if you have any doubts, feel free to DM us.

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Hi @Bogi.H , just to clarify.

I receive 2 dividend payments on 12/Jan. as shown in my print screen in my previous posts:

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In 13/Jan, I received a 3rd dividend payment (curiosity: 1 day after I post here and reach out the Customer Support about the difference on the total dividend amount) with the rest/difference of “PER SHARE (GROSS)” of 0.0303 USD I mentioned previously, as you can see below:



→ The Tax Rate is now 25%? Please don’t say it’s only a visual error, as you can also see the “PER SHARE (NET)” is 0.02272 USD. Meaning that you applied a 25% tax rate on the PER SHARE (GROSS) ” of 0.0303 USD:

TAX RATE $0.0303
15% $0.025755
25% $0.022725

→ But thanks T212 team for the quick response and solution on this issue.

Not tax advice

our income when paid to a European unitholder, are subject to varying rates of U.S. and Canadian withholding taxes ranging from nil to 30%.

The payment seems right, just a bit unclear which components are return of capital, capital gains, taxable dividend/interest and non taxable dividend/interest.

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I was always taxed at 15%. And in your BIP link:

Based on these and with W8BEN, the tax rates that apply to us it’s a maximum of 15%.

But I leave to T212 explained it better. :wink:

@Team212 @Tony.V

Opened a new thread on this subject, as my polite initial query in this thread was ignored, but some kind soul (presumably from admin?) has merged it back here (would’ve just preferred an answer if I’m honest! :upside_down_face:).

I hold shares in DGI9, whose dividend was due for payment on 23/12/21 (Dividend Declaration - 14:00:05 30 Nov 2021 - DGI9 News article | London Stock Exchange) and as yet, I haven’t received any payment nearly a month later.

The previous quarterly payment didn’t seem to have any such issues. Please therefore can someone look into this for me and advise what the problem is, and when I can expect the payment.

NB. I also hold the stock with another broker (ii) who were able to make the payment on the due date, so not sure why this payment should be taking so long here?

Hey, @PeakOwl. :wave:

We’ve received the Digital 9 Infrastructure dividends from our intermediary, and we’ve just distributed the funds to all eligible shareholders.